The Fountain Valley Chamber of Commerce just announced that they have decided to endorse the Fountain Valley sales tax increase Measure – HH.
HH is on the November ballot. It is a 20-year long, 1% sales tax increase with many negative financial impacts to both our residents and businesses. If passed by Fountain Valley’s voters, they will increase their city’s sales tax to 9%.
It is an “excessive” increase, since it will bring in $11.5 million dollars annually for 20 years. The math works out to a whopping $230,000,000. The current Council majority has passed a deficit budget for years now with a current deficit of $1.7 million.
Many local businesses are VERY concerned, and for good reason, about their customers and capital improvements.
Should the Chamber have just walked away from this one without taking a position? How does the Chamber of Commerce’s YES position support local businesses? How is this going to bring new sales to the Chamber of Commerce’s dues-paying members?
Currently the OCTA is struggling because their sales tax funded Measure M is not collecting the revenue they thought it would. Why? Because so many consumers are now shopping online. That means they are not paying local sales taxes, in most cases.
Fountain Valley is surrounded by cities that will be happy to welcome Fountain Valley consumers with lower sales taxes. Moreover Amazon just bought a new warehouse in Irvine. They plan to take as much retail business away from local brick and mortar retailers as possible!

Cheryl Brothers wants more of your money!
If Fountain Valley is upside down it is the fault of longtime City Council Members Cheryl Brothers and Steve Nagel. Wise Fountain Valley voters should vote for their opponents, Kim Constantine and Patrick Tucker. And vote no on Measure HH!

Tax increase flip-flopper Steve Nagel
As for the Fountain Valley Chamber of Commerce we recommend that their members either quit that failed Chamber or oust their Board of Directors. They have failed to look after the interests of local businesses by advocating for higher taxes instead of calling for better local government.
The Fountain Valley Chamber of Commerce is a farce. What kind of Chamber endorses a tax that will result in direct harm to its members and mission. Fact of the matter is that the Chamber is operated as an ego stroking exercise for its management and board of directors. They care not a wit for its rank and file and the functions it holds are simple ballwashes of the board and their cronies at City Hall.
OK, Most of you have attended the copious number of the City of Fountain Valley’s 1% Increased Sales Tax, Measure HH informational meeting in Parks, Private Homes, Businesses, Senior Center, Assisted Living Facilities and Churches.
The lingering Messages you were only able to come away with after attending these City meetings was, the Doom and Gloom Threats that if Measure HH is Defeated that, the Critical Public Safety Services, Police and Fire Personal and Facilities are all in danger of being Reduced, Cut or Eliminated if the 1% Increased Sales Tax, Measure HH is Defeated.
Additionally, these ongoing informational meetings included more Doom and Gloom Threats to our Seniors and Youth that the Senior Center, The Senior Programs and The Youth Programs will be Reduced, Cut or Eliminated and the pot holes in our Streets would not be able to be repaired and the Cities Aged Infrastructure would fail and not be repaired, etc. etc.
As you might conclude after attending one of these meetings that yes indeed, the City of Fountain Valley is in Dire Straits Financially.
However, this Doom and Gloom Threat approach is no way to sell and convince our residents for the need for the 1% Increased Sales Tax, Measure HH.
The Predictions of Possible Cuts to Critical Public Safety Services being directed towards our uninformed Seniors, our Residents and our Younger Residents without providing the Many Negative Impacts of Measure HH is a Very Despicable way and not a very Moral or Ethical Act to be done by the City to its people!
Let’s Consider some of the Possible Negative Affects and the Impacts of the 1% Increased Sales Tax, Measure HH as it could Affect us all Fountain Valley Residents and many of our Fountain Valley Businesses.
Following is information the City hasn’t voluntarily mentioned or addressed at their Informational City View only meetings about the 1% Increased Sales Tax, Measure HH.
Yes, But First, we are all aware that the 1% Increased Sales Tax, Measure HH will bring the Following as the City has addressed in its Informational meetings:
O An expected incoming revenue to the City of $11,500,000 annually for 20 years.
O The City says the 1% Increased Sales Tax, Measure HH is only a Temporary Tax! Do you think that a 20 year Duration Sales Tax is Temporary?
O The 1% Increased Sales Tax, Measure HH is a Fair Tax as it will be Shared and also be Paid by Out of Town Visitors shopping our Fountain Valley Businesses. This is only partially true!
O The $11,500,000 annual incoming revenue will sustain all our Critical Public Safety Services, our Police and Fire Departments, Senior / Youth programs and pay down the Cities Debts.
Presented below are the possible Negative Impacts and Affects the City isn’t Addressing or telling you Fountain Valley Residents about the 1% Increased Sales Tax, Measure HH affecting All Fountain Valley residents and Fountain Valley Businesses:
You may have seen or heard that the people saying that they are for a Yes on 1% Increased Sales Tax, Measure HH have been keeping track of their Sales Taxable Purchases and they are all unified in stating that they see no hardship from the possible 1% Increased Sales Tax, Measure HH.
They have expressed that their tracking experience has indicated that they are only paying $5.00 per month which would calculate to $60.00 per year for 20 years.
Now, let’s be practical and consider if the Annual incoming revenue as stated by the City is expected to bring in $11,500,000 a year for 20 years how can $60.00 per year from each of the 21,171 Fountain Valley households or a resulting annual amount of $1,270,260 make any real sense?
With this annual amount of Sales Tax of $1,270,260 paid in by the Fountain Valley residents, could we in any way logically, expect that the remainder of $10,229,740 Sales Taxes annually would be contributed by the Out Of Town Visitors Shopping our Fountain Valley Businesses?
I don’t think so!
We all know that the Out Of Town Visitors shopping our Fountain Valley Businesses will share by paying the increased Fountain Valley Sales Tax on all Retail Sales and Gasoline.
These Sales would exclude basic Food but, not including prepared Food,but would exclude paying sales tax on Medicine and All types of all Motor Vehicles and all their purchased Delivered Appliances purchased in Fountain Valley.
These major Purchase Exclusions of all types of Motor Vehicles and Delivered Appliances by the Out Of Town Shoppers purchasing these Hi Ticket Items In Fountain Valley is a real problem.
These Out of Town Visiting Shoppers purchasing these Hi Ticket Items will NOT PAY THE 1% INCREASED SALES TAX AS, THEY WILL PAY THE SALES TAX THAT EXISTS IN THE PLACE THEY LIVE!
In Direct Conflict, Fountain Valley Residents WILL BE REQUIRED TO PAY THE 1% INCREASED SALES TAX ON THEIR PURCHASES OF ANY MOTOR VEHICLE TYPE OR ANY DELIVERED APPLIANCE THEY PURCHASE IN OR OUT OF FOUNTAIN VALLEY!
O Here is a very conservative Cost Estimate of what the 1% Increased Sales Tax, Measure HH will cost everyone of the 21,171 Households in Fountain Valley for 20 years if Measure HH is accepted by the Fountain Valley Electorate on November 8, 2016:
O Assuming the very conservative cost estimate of what the City has put forth of its Cost of $200.00 annually to be spent on the Increased Sales Tax by each of the Fountain Valley households we can then extrapolate the total annual amount received from each of Fountain Valley’s Households annual contribution to the projected $11,500,000 annual 20 year incoming added Sales Tax Revenue.
Do the math, this amount calculates to a total of $4,234,200 annually leaving $7,265,800 to be paid annually by the Out Of Town Visitors shopping our Fountain Valley Businesses.
Is this more realistic considering the Fountain Valley Residents Paying the Increased Measure HH Sales Tax whither or not they purchase in or out of our City and the Fact that the Visiting Out Of Town Shoppers WON’T BE PAYING THE INCREASED 1% SALES TAX FOR ANY TYPE OF MOTOR VEHICLE OR DELIVERED APPLIANCE THEY PURCHASE IN OUR CITY?
I do think it is more realistic than the $60.00 per year being put forth to the Yes For Measure HH People!
Now there is the Question If Fountain Valley has a Sales Tax of 9% and the Close by Cities Charge a lesser Sales Tax, Will Fountain Valley Residents or Out Of Town Visitors Shop the Lesser Sales Close By Cities? If this happens, it will be bad for Fountain Valley and Fountain Valley Businesses.
Just consider that the Huntington Beach Costco is Very Close to Fountain Valley and our Fountain Valley Costco could suffer reduced sales and other Businesses in Fountain Valley could suffer reduced Businesses if people shop the lower Sales Tax Cities and while there also my Dine and be Entertained there!
Add to your consideration that Yes, Huntington Beach is very close to Fountain Valley and I would think that it is possible that many Fountain Valley Citizens will shop the Huntington Bella Terra Costco to purchase their Sales taxable Items, Gasoline, Dine and be entertained there.
Add to that the extra savings from the Visa Card that is only accepted at Costco as it offers:
• 4% cash back on gas worldwide (not just at Costco) up to $7,000 in purchases each reward year.
• 3% at U.S. restaurants and on eligible travel (airfare, hotels, car rentals from major companies listed here, Costco Travel, cruise lines, and travel agents)
• 2% on all Costco and Costco.Com purchases
• 1% on all other purchases
Total annual possible cash back is; $2310
Add to that a extra 1% Sales Tax Saving and yes, it will certainly affect our Fountain Valley City and our Fountain Valley Costco and other Businesses in Fountain Valley.
If you look at the city’s last budget, they generate about $12M in sales tax from the state. My understanding is that cities keep 1% of the 8% sales tax. So that’s where they are getting their $11M number from. Hard to believe that we generate that much income in sales tax but I guess we do.
I think it’s very strange that the Chamber of Commerce endorses this measure. Have they asked the businesses that are part of the Chamber? Is this really what a majority of businesses want?
By the way, who wrote this article? There is no “by line”. Just curious.
Of course they support HH because they know there is no other way to pay back the debt of the city without this measure… there’s not been a single person who is offered any kind of solution to pay back the hundred and twenty million dollars in debt. It’s bad for business it’s bad for homeowners to have their City go into bankruptcy, which is exactly what will happen if this doesn’t pass. Wake up people even the businesses in Fountain Valley understand this is the only solution that we have.
“Why did the Fountain Valley Chamber of Commerce endorse higher taxes?”
Answer: Union pressure without a doubt – same as Stanton & Westminister.
The Fountain Valley Chamber of Commerce just announced that they have decided to endorse the Fountain Valley sales tax increase Measure – HH. Measure HH is on the November ballot. It is a 20-year long, 1% sales tax increase with many negative financial impacts to both our residents and businesses. If passed by Fountain Valley’s voters, they will increase their city’s sales tax to 9%. The 9% Increased Sales Tax will hurt Fountain Valley Residents and many Fountain Valley Businesses. People will shop, dine and be entertained were they can save in the close by lower Sales Tax Cities.So, why would the Fountain Valley Chamber of Commence do this to their Business Members. It wont Help Their Members it will hurt their members so, Why and What caused them to do this? A Very Bad Decision on their part for all their Business Members!